Sanson's Estate

Citations

• 217 Pa. 203
• 66 A. 334
• 1907 Pa. LEXIS 686

Syllabus

<p>Insurance — Life insurance — Tontine insurance — Assignment of policy— Beneficiary — Husband and wife — Gift.</p> <p>A decedent having a policy of insurance on his life payable to his estate, made a voluntary assignment of it, in writing, to his wife. The assignment provided that if the insured survived the tontine period of fifteen years, the assignment should be void. The policy gave to the insured an option at the end of fifteen years to withdraw in cash the accumulated surplus apportioned by the company. This option was to be exercised by the insured without the consent of the beneficiary. It was exercised by the insured, and after the payment the policy and the original assignment remained in the custody of the decedent. There was testimony tending to show that, at the time the insured exercised his option and received the accumulated dividends from the company, he and his wife went together to the office of the company in pursuance of notice sent to both, that she there joined with him in signing the papers necessary to effect the option exercised; that the agent of the company told them, in reply to their inquiries, that the policy would continue in force and that she would remain the beneficiary; that this was what the decedent desired, and that it was the understanding and agreement between him and his wife at that time. Held, that no formal reassignment of the policy to the wife was necessary, and that after the death of her husband she was entitled to the proceeds of the policy.</p> <p>Wherever a person has the legal right to dispose of property and means to do so, the form of the instrument adopted for the purpose, if at law ineffectual, will be disregarded, and it will be reformed so as to make it effectual.</p>